The Benefits of Pre Planning

If a little planning on your part could relieve your family from the stress of making important decisions during an emotionally wrenching time, would you do it?

Planning your funeral service in advance can offer emotional and financial security for you and your family. With preplanning, which doesn’t necessarily mean paying in advance, families find comfort in knowing that the funeral reflects what their loved one wanted.

Peace of mind is among the biggest reasons people are choosing to make advance funeral arrangements. A trend in personalization is another. Individuals and families today are planning celebrations of life as unique as the individual being remembered. Today’s funerals include adding personal touches such as favorite music and incorporating hobbies and life’s accomplishments. A National Funeral Directors Association funeral director can walk you through the decisions necessary to create a meaningful funeral service.

Once you’ve made your plans, keep a copy of them and any pertinent paperwork in a safe place. Also, inform a close friend or relative what arrangements you’ve made and where the information may be found.

If you choose, there are several ways to prepay for your funeral. The most common ways include annuities, life insurance policies, savings accounts, and bank trusts. Each method has its advantages. To help determine which option is best for you, ask your funeral director the following questions:

Who receives the interest on the account?

Who must pay taxes on the interest?

Is the prepayment ever refundable, in part or in full?

Can the plan be used at a funeral home of your choice?

What happens if the funeral home goes out of business or is sold?

In the event that you move, is the prefunded plan transferable?

If you feel prepaying is wise for you, then be sure to go over all available options with your funeral director. As with any contract, ask questions you may have regarding your preneed plan before you sign an agreement.

NFDA developed the Consumer Preneed Bill of Rights as a resource for understanding what to expect from any preneed contract. The document is available on NFDA’s Website at www.nfda.org, and outlines the rights and protections that an ethical and reputable funeral home will guarantee.